National Bank of Fujairah net profit soars 120.7%

National Bank of Fujairah (NBF) on Wednesday announced a year-on-year growth of 120.7 per cent in its net profit for the six month period ending June 30, 2023 to Dh332.1 million, compared to Dh150.5 million in the corresponding period of 2022.

On the back of a robust Q2 2023 performance, NBF posted a net profit of Dh180.1 million in the second quarter of 2023, a rise of 99.8 per cent over the corresponding quarter of 2022, which reflects the interest rate environment, an improvement in the impairment provisions during the current quarter and a high level of resilience in its core business despite the prevailing geopolitical headwinds and an uncertain global environment.

Aided by higher net interest income and net income from Islamic financing and investment activities, NBF posted an operating profit of Dh785.3 million for the six month period, a substantial increase of 28.9 per cent compared to Dh609.1 million in the corresponding period of 2022 and up 22.7 per cent for the three month period ended 30 June 2023 over the corresponding period of 2022.

Operating income reached Dh1.1 billion for the six month period ended 30 June 2023, up 29.6 per cent compared to Dh858.5 million in the corresponding period of 2022, reflecting the benefit from rising interest rates, good momentum experienced in its businesses and enhanced asset and liability management. Operating income growth of 25.4 per cent was recorded for the three month period ended 30 June 2023 over the corresponding period of 2022; and up 0.9 per cent compared to Q1 2023.

Net interest income and net income from Islamic financing and investment activities grew 58.6 per cent to Dh825.1 million for the six month period ended 30 June 2023 compared to Dh520.1 million in the corresponding period of 2022. It was up 49.5 per cent for the three month period ended 30 June 2023 compared to the corresponding period of 2022.

Dr. Raja Easa Al Gurg, Deputy Chairperson said: “2023 has started well for NBF, with the bank delivering another very encouraging set of results in the first half of 2023 and being honored with a number of prestigious awards and endorsements. We are particularly delighted that the bank has been awarded the ‘Best Innovation in Trade Finance’ and ‘Most Innovative Trading Platform’ awards at the recent MEA Finance Banking Technology Awards; and the ‘Best Islamic Window - UAE’ at the International Finance Awards 2023, showcasing two of our business areas that have sustained strength.

NBF’s strong Q2 results re-affirm that our business strategies and operational priorities are on track to ensure we return to our long-term trend of sustainable growth. It is good to see the bank’s underlying resilience and proactive approach in what continues to be an uncertain and challenging environment; resulting in an improvement in business performance and asset quality that augurs well for the coming quarters of 2023 and beyond.

• Business